Learn how to better manage your machinery investments from Greg Peterson, a.k.a. "Machinery Pete." He's been researching and analyzing machinery auction prices for more than 20 years.
Hot Bidding on Older, Smaller Used Equipment
Nov 17, 2013
It's happened 3 times now.
I'll be out covering a nice farm auction, video camera in hand. In advance of the sale I scan the equipment list and have my eye set on a few key pieces on the auction. Sale day arrives and the auction company is working its way through the lines of equipment, still early in the auction, before the main items come up for sale.
Then it happens.
What? One particular piece of equipment on the sale, usually an older, smaller item but in very good condition will absolutely catch fire, bids come flying like mad....."it's up to how much??" Caught off guard I'll quick flip my camera on and jump in to catch the hot bidding action. The gavel falls and crowd collectivvely murmurs....."whoa.'
Happened again yesterday (November 16, 2013) at a small farm estate auction I covered just outside of Northfield, MN (southeast Minnesota), a sale by Maring Auction Co. We were working our way down the line of equipment, I was chatting with couple guys about the tractors coming in short while....holy cow, what's the bid up to on that IHC 470 disk?
Sold for $3,400 (pictured above). That is the 3rd highest auction sale price I've seen in the past 15 years on an IHC 470 disk. This one was a 21 1/2 foot model with manual fold wings. This is the 3rd time this has happened to me, covering a sale, suprised by strong bidding on an older, small used disk. Here's the scoop on the other (2) times:
* $7,100: JD 230 25 1/2 foot disk, sold on 2/1/11 farm auction, northwest Iowa
* $15,000: JD 235 30' disk, sold on 3/9/13 farm auction, southwest Minnesota
At the time, $7,100 for the JD 230 disk was the 2nd highest auction sale price I'd ever seen. Since that 2/1/11 auction in northwest Iowa....I've seen (3) sell higher, all the way up to the new record auction price of $10,000 on the JD 230 21 1/2 foot disk sold on a 4/17/12 farm auction in south-central Saskatchewan.
$15,000 for that JD 235 disk sold back on the March 9, 2013 auction in southwest Minnesota...that is the $2,200 OVER the previous record high auction sale price of $12,800 which came all the way back in the year 1996.
So, yeah, you can safely say it's been a RED HOT market the past few years for really good condition older, smaller used DISKS.
Same for older 6-row PLANTERS. More proof on the Northfield, MN farm estate auction yesterday where this (pictured below) JD 7000 6R-30 planter with dry fertilizer sold for $8,250:
The highest auction sale price I've seen on a JD 7000 6-row planter the past nearly 18 years? Answer: $9,800...here's Youtube video I shot of that JD 7000 6-row planter selling on a 11/12/11 farm retirement auction in south-central Wisconsin:
The HOT bidding on good condition smaller used farm equipment continues here late in 2013.